What are Performance Bonds?
A Performance Bond is a bond that guarantees that the bonded contractor will perform its obligations under the contract in accordance with the contract’s terms and conditions.
Performance Bonds are typically in the amount of 50% of the contract amount, but can also be issued for 100% of the contract amount.
The Three C’s of Credit
Performance bond rates vary in cost depending on this 3’C:
What are the contractor’s standing and reputation in the market?
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Frequently Asked Questions
How much does a performance cost?
Generally speaking, rates are usually between 0.7% to 1.5% of the contract value.
Performance bond rates vary in cost depending on the 3 C’s of Credit.
When are performance bonds required?
When a contractor is a successful bidder on a tender, a performance bond is often required to be submitted along with various documents before starting work.
Performance bonds are most often requested on public projects but can be requested by private owners as well.
Performance bonds are available for general contractors, sub-contractors along with many niche industries including suppliers, manufacturers and engineering companies.
Are you new and emerging contractors?
Do you need a bid, performance or labour & material payment bond under 1 Million dollars?
Are you a new contractor looking to begin bidding on public contracts?
Have you been told your company does not qualify for bonding?
If you answered yes to any of these questions, then FirstBond™ is perfect for you.
FirstBond is a new program by FCA Surety, it is a quick easy bonding solution for new and emerging contractors across Canada.